Fiscal Stimulus and Jobs

The Herald reports:

Facing a sceptical public and an implacable opposition, United States President Barack Obama insisted the US$787 billion ($1.1 trillion) financial stimulus plan signed into US law a year ago had been worth the money.

Marking the anniversary with a renewed effort to show the everyday benefits of the American Recovery and Reinvestment Act, the President predicted it would save or create 1.5 million US jobs this year on top of 2 million last year.

But what happened?

A nascent economic recovery is threatened by continuing high unemployment, which stands above 10 per cent, and the unpopularity of the first stimulus package is complicating efforts to pass a second “jobs bill” that is currently under negotiation in Congress.

Unemployment is around 2% higher than what Obama said it would be if the stimulus package was not passed. And they are surprised that a second borrow and spend package is not popular.

A recent poll found that only 6 per cent of Americans believe it has created jobs.

And they are insisting on a second package!